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Author: kahunacfa Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2387  
Subject: Re: HPQ Date: 10/18/2012 4:41 AM
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I HAVE HELD HPQ for quite a few years,it seems on a downward spiral,still holding on.Any advice would be appreciated.Best Wishes Pattipf3 - pattipf3 | Date: 10/3/2012 8:49:19 PM | Number: 2358

Pattipf3,

I still like Hewlett-Packard, long-term, on weakness, especially going into year end in late December 2012 to consider buying or adding to an existing position. The company has publicly said in their earning conference calls that the turn-around will be a long, drawn-out process well into 2013 and even 2014. If you are satisfied primarily with the company's dividend yield, the shares are a decent holding and perhaps a buy on price weakness under $12 - $14.50 or so where there is some decent yield support.

The problems with Hewlett now are: 1. Weakness in the PC Market, 2. Softness in the desktop printer market, and 3. Successful integration of several ill-advised acquisitions acquired at too high a valuation for less than dominant businesses. It will be late 2014 and into 2015 for everything to come together at the company. The potential problem is that by 2015 the Economy is likely to be facing another cyclical downturn. Hewlett-Packard has no defensible position in Tablet computing -- a significant flaw and weakness.

Kahuna, CFA
Venture Capital
General Partner

Disclosure: Small Long position in Hewlett-Packard(HPQ). Large Long position in Apple(AAPL) <cost $5.125 per share>
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